Majority of Germans doubt the euro will survive

22 Oct, 2012

For the first time since the euro zone crisis started nearly three years ago a majority of Germans doubt that the common currency will survive, a survey showed on Wednesday. Only 40 percent of those who live in Germany, Europe's largest economy, are convinced the euro will still be around in 10 years' time, an Allensbach Institute survey published in German newspaper Frankfurter Allgemeine Zeitung showed.
That compared with 50 percent at the end of 2011. Greece, whose debt woes triggered the euro zone crisis, is in its fifth year of recession and struggling to meet fiscal targets set by its "troika" of international lenders, who are reviewing its 130 billion euro ($169 billion) bailout programme.
A study published by leading German think tank the Bertelsmann Foundation on Wednesday said a Greek exit from the euro could trigger a global economic crisis of dire proportions and should be avoided at all costs.
While some 64 percent of Germans do not believe Greece's problems can be solved, only around a third are convinced that a Greek exit from the euro zone would have largely positive effects, the study showed.
A majority of Germans is "extremely worried" about the region's troubles and is convinced that the worst is yet to come. Some two thirds fear the cost of rescue measures will financially overstretch Germany, Europe's paymaster.
But despite increasing signs of pessimism, there are no signs that Germany's population is turning its back on the common currency and Europe, and a majority of those polled still want to keep the euro.
"Even though trust in the common currency has reached a low point, people do not consider a return to the national currency a promising solution," the study said.
One in four Germans believe the advantages of EU membership outweigh the disadvantages, according to the study which comes just before a two-day summit of EU leaders.

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